SB-0910, As Passed House, December 13, 2005
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 910
A bill to amend 1975 PA 228, entitled
"Single business tax act,"
(MCL 208.1 to 208.145) by adding section 35i.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35i. (1) A taxpayer that provides transferred jobs to
this state may claim a credit against the tax imposed by this act
equal to 100% of the property taxes paid on tangible personal
property used in the performance of the transferred jobs. The
credit allowed under this section shall only be available for taxes
paid the first year that the taxpayer pays property taxes on that
property which shall be the same tax year in which the credit under
this section based on those property taxes is claimed.
(2) The credit under subsection (1) can be claimed only for
Senate Bill No. 910 (H-1) as amended December 13, 2005
taxes paid in the 2007 or 2008 tax year.
(3) The Michigan economic growth authority shall determine if
the taxpayer provides transferred jobs. If the Michigan economic
growth authority determines that the taxpayer provides transferred
jobs, the Michigan economic growth authority shall issue a
certificate to the taxpayer that includes all of the following:
(a) The taxpayer's federal identification number.
(b) The number of transferred jobs, as determined by the
Michigan economic growth authority.
(c) The taxable value of the property used in the performance
of the transferred jobs as reported by the taxpayer on the property
tax statement required by and filed under section 19 of the general
property tax act, 1893 PA 206, MCL 211.19.
(4) The taxpayer shall not claim a credit under this section
unless the Michigan economic growth authority has issued a
certificate to the taxpayer pursuant to subsection (3). The
taxpayer shall attach the certificate to the annual return required
under this act on which the credit under this section is claimed.
(5) If the taxpayer does not maintain the total number of jobs
located in this state [or, if the jobs qualify under subsection
(9)(e)(iii)(B), at the facility,] in the tax year immediately preceding the tax
year in which [the transferred jobs were moved to this state], for 3
years
after the year in which a credit under this section was claimed,
the following percentage of the credit amount previously claimed
under this section shall be added back to the tax liability of the
taxpayer in that year:
(a) If the total number of jobs is less during the first year
after the year in which the credit was claimed, 100%.
Senate Bill No. 910 (H-1) as amended December 13, 2005
(b) If the total number of jobs is less during the second year
after the year in which the credit was claimed and subdivision (a)
did not apply, 67%.
(c) If the total number of jobs is less during the third year
after the year in which the credit was claimed and neither
subdivision (a) nor (b) applied, 33%.
(6) Personal property taxes used to calculate a credit under
this section shall not be used to calculate a credit under section
35d, 35f, 35g, or 35h.
(7) The credit allowed under this section shall be calculated
after application of all other credits allowed under this act.
(8) If the credit allowed under this section exceeds the
taxpayer's tax liability for the tax year, that portion of the
credit that exceeds the tax liability shall be refunded.
(9) As used in this section and section 35j:
(a) "Facility" means, as determined by the Michigan economic
growth authority, a site or combination of sites[in this state] at which
transferred jobs are located.
(b) "High-technology activity" means that term as defined in
section 3 of the Michigan economic growth authority act, 1995 PA
24, MCL 207.803.
(c) "Manufacturing jobs" are jobs for a company that has a
classification under sector 33, subsector 321, or subsector 322 of
the North American industrial classification system (NAICS).
(d) "Property taxes" means any of the following:
(i) Taxes collected under the general property tax act, 1893 PA
206, MCL 211.1 to 211.157.
Senate Bill No. 910 (H-1) as amended December 13, 2005
(ii) Taxes levied under 1974 PA 198, MCL 207.551 to 207.572.
(iii) Taxes levied under the obsolete property rehabilitation
act, 2000 PA 146, MCL 125.2781 to 125.2797.
(iv) Any payments made by the taxpayer pursuant to a contract
with the Michigan strategic fund in connection with the creation of
a renaissance zone under the Michigan renaissance zone act, 1996 PA
376, MCL 125.2681 to 125.2696, to the extent that those payments
are made by the taxpayer to reimburse all taxing units for property
taxes that would otherwise be exempt under section 7ff of the
general property tax act, 1893 PA 206, MCL 211.7ff.
(e) "Transferred jobs" means jobs that meet all of the
following criteria:
(i) Are jobs that perform high-technology activity or
manufacturing jobs.
(ii) Were located in a different state or different country
before being moved to this state in [the tax year in which the taxpayer
claims a credit under this section or in] the immediately preceding tax
year.
(iii) Meet either of the following criteria:
(A) Represent an overall increase in full-time equivalent jobs
of the taxpayer in this state for the [tax year in which the
taxpayer claims a credit under this section or the immediately preceding] tax year above the total
number of full-time equivalent jobs of the taxpayer in the
[ ] tax year [immediately preceding that year].
(B) If approved by the Michigan economic growth authority and
upon a showing by the taxpayer, meet both of the following
criteria:
(I) The [ ] jobs represent an increase in the number
of full-time equivalent jobs of the taxpayer for the [tax year in which
the taxpayer claims a credit under this section or the immediately preceding] tax year at
Senate Bill No. 910 (H-1) as amended December 13, 2005
the facility to which the jobs are transferred above the number of
full-time equivalent jobs of the taxpayer at the facility for the
[ ] tax year [immediately preceding that year].
(II) The transfer of jobs to the facility is substantially
more likely to occur if the taxpayer receives the credit provided
by this section.
(iv) Is not a job into which an employee transfers if the
employee worked in this state for the taxpayer, a related entity of
the taxpayer, or an entity with which the taxpayer files a
consolidated return under section 77 in another job prior to
beginning the transferred job.
(v) The benefits for the employee in the transferred job
include coverage under health and welfare and noninsured benefit
plans, including, but not limited to, prescription coverage,
primary health care coverage, and hospitalization that is not
limited to emergency room services or subject to dollar limits,
deductibles, and coinsurance provisions that are not less favorable
than those for physical illness generally.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No. 203.
(b) Senate Bill No. 909.
(c) House Bill No. 4982.
(d) House Bill No. 5459.
(e) House Bill No. 5460.
(f) House Bill No. 5461.
Enacting section 2. If a final order of a court of competent
jurisdiction for which all rights of appeal have been exhausted or
have expired determines that any provision of the credit allowed
under the section added by this amendatory act or any other
provision of this act that provides a deduction, credit, or
exemption with respect to employment, persons, services, taxes,
investment, or any other activity that is limited only to this
state is unconstitutional or applies to employment, persons,
services, taxes, investment, or any other activity outside of this
state, then that deduction, credit, or exemption shall be severed
from this act in its entirety and shall not be effective for any
tax year for which the final ruling applies and the remaining
provisions of this act shall remain in effect.